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Abstract of
title |
A condensed history
or summary of all transactions affecting a particular parcel
of real estate, including the original grant, all conveyances
and encumbrances affecting the property, and the abstractor's
certification of the history's accuracy |
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Acceleration
clause |
A clause in a
mortgage that gives the lender the right to require payment of
the entire principal balance if the borrower defaults on an
installment payment or other covenant |
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Acceptance |
An offeree's consent
to enter into, and be bound by the terms of, a
contract |
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Access |
The right to enter
and exit a parcel of land from a public way, including the
right to enter and exit via land belonging to
others |
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Acknowledgment |
The confirmation by
which a party executing a legal document confirms his
signature and voluntary agreement with the terms of the
document, made before an authorized officer of the Court or
notary public |
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Acre |
43,560 square feet
of land |
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Adjustable-rate mortgage (ARM) |
A mortgage with
interest rates that may fluctuate based on market conditions;
the lender is permitted to adjust the mortgage's interest rate
periodically, though most ARM's are limited in the amount that
the interest rates can vary |
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Adjusted basis |
The total of the
original cost of a property and the value of any capital
expenditures for improvements done to it, minus any
depreciation taken |
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Adjustment date |
The date on which
the interest rate changes for an adjustable-rate mortgage
(ARM) |
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Adjustment period |
The period of time
between the adjustment dates for an adjustable-rate mortgage
(ARM) |
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Administrator |
A person appointed
by a probate court to administer the estate of an individual
who has died without a will |
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Adverse Possession |
A claim made against
the land titled to another person, by virtue of open and
hostile possession and use of the land to the exclusion of the
titled owner |
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Affidavit of title |
A sworn statement
that is made in writing under oath by a seller of real
property, and certified by a notary public, in which the
seller identifies himself or herself, indicates marital
status, certifies that no defects have occurred in the title
since the examination of the title on the date of the
contract, and confirms that he or she is in possession of the
property (if applicable) |
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Agency |
The relationship
between two or more persons wherein the agent is authorized to
act on behalf of another person (or principal) in certain
transactions |
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Agent |
A person or company
that acts on behalf of another to transact business, generally
in exchange for payment. In real estate, it is a person or
company with a real estate license working under the authority
of a real estate broker |
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Alienation |
The act of
transferring property to another, either voluntarily (via a
sale), or involuntarily (via adverse
possession) |
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Alienation clause |
The clause in a
mortgage or deed of trust which asserts the lender's option to
require that the balance of the secured debt becomes
immediately due and payable if the property is sold by the
borrower, preventing the borrower from assigning the debt
without the lender's approval |
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ALTA |
American Land Title
Association, the national association of title insurance
companies, abstractors and attorneys specializing in real
property law, headquartered in Washington,
D.C. |
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Amenity |
A natural or manmade
feature of real property that enhances its value and
attractiveness, though it is not essential to the property's
use |
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Amortization |
The process of
payment of a debt or mortgage loan over time by
installments |
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Amortization schedule |
A timetable for
repayment of a debt or mortgage loan, showing the amount of
each payment, what portion is applied to interest and
principal, and the remaining balance |
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Amortization term |
The amount of time
required to repay the mortgage loan, expressed in number of
months |
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Amortize |
To pay off a loan or
mortgage with periodic payments that cover both principal and
interest |
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Amortized loan |
A loan in which both
the principal and interest are payable in monthly or other
periodic installments over the term of the loan, with no
balloon payment prior to maturity |
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Annual mortgagor statement |
An annual report
sent to the borrower (mortgagor) each year, showing the amount
paid in taxes and interest during the year, as well as the
remaining mortgage loan balance |
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Annual percentage rate (APR) |
The overall cost of
a mortgage, including interest, mortgage insurance, and loan
origination fee (points), stated as a yearly percentage, thus
allowing buyers to compare different types of mortgages based
on the associated annual finance charges; the APR must be
disclosed to borrowers by lenders, per the Truth-in-Lending
Act |
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Annuity |
The return,
including interest, from an investment of capital, paid in a
series of regular payments |
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Appraisal |
A written estimate
of the value of an asset or property prepared by a qualified,
independent party, through which the asset or property value
is determined |
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Appraised value |
The estimate of a
property's fair market value, based on an appraiser's analysis
of the property |
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Appraiser |
An individual
educated to estimate the value of real property and personal
property |
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Appreciation |
An increase in the
worth of a property due to changes in economic conditions or
other causes; the opposite of depreciation |
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Appurtenance |
Anything attached
to, or used with, a parcel of land that will go to the new
owner on conveyance of the land |
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ARM |
Adjustable-rate
Mortgage. Also see "Variable Rate Mortgage" |
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Assessment |
A tax, charge or
levy against a property made by the government, based on its
value, and levied for a specific purpose, such as to finance
sidewalks, a sewer, etc. |
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Assessment rolls |
The public record of
taxable property |
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Assessor |
A public official
who evaluates the value of a property for taxation
purposes |
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Asset |
Anything of monetary
value owned by an individual, including real property,
personal property, and enforceable claims against others (bank
accounts, stocks, mutual funds, etc.) |
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Assign |
To transfer
interest |
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Assignee |
One who receives an
assignment or transfer of rights |
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Assignor |
One who makes an
assignment or transfer of rights to another |
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Assumable mortgage |
A mortgage that
allows a new owner to take over its
obligations |
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Assumption |
The process of
transferring the seller's existing mortgage and liability for
payments to the buyer when purchasing a property, which
usually saves the buyer money, since assuming a new mortgage
incurs additional closing costs and possibly higher interest
charges |
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Assumption clause |
The provision in an
assumable mortgage that allows a buyer to take responsibility
for that mortgage from the seller |
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Attachment |
Seizure of property
through Court process to force payment of a
debt |
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Attorney-in-fact |
One who holds a
power of attorney from another to execute legal documents on
behalf of the grantor of the
power |
